Germany to expand faster than predicted
According to the revised estimates, gross domestic product (GDP) will to grow 1.8 percent this year, slightly faster than the 1.7 percent growth the government had forecast in October last year. The outlook indicates a marked improvement from last year's 0.4 percent expansion. In 2015, growth is seen picking up further to 2 percent.
This year, the primary boost to the economy should come from a 2 percent growth in domestic demand, which has been upgraded from the 1.9 percent forecast earlier. Exports are seen growing 4.1 percent in 2014, up from 3.8 percent predicted in the previous report.
Minister of Economy Sigmar Gabriel said that the German economy has embarked on a stable and broad-based recovery course. The ongoing improvement of labor market conditions is expected to continue in the coming months, leading to further growth in household spending. However, Germany's current account surplus is set to narrow this year, with imports projected to grow at a faster rate than exports, the report states. ■